Infosys shares hit 6-year low as AI fears rise (2026)

Shareholders put stock slide and AI risks on the table

At least half of Infosys Ltd’s 22 shareholders who were virtually present at the company’s 45th annual general meeting (AGM) questioned management about the falling share price and the threat from automation and artificial intelligence (AI) tools. The discussion came as the stock remained under pressure in a broader sell-off across Indian IT services companies. Some investors said the market was signaling concern that traditional IT services could lose relevance as clients adopt new AI-led ways of working. One shareholder, Om Prakash Kejriwal from Kolkata, explicitly linked the decline to what he viewed as insufficient investment for the future and said foreign investors were selling. Management did not comment on the share price, but it repeatedly pointed to AI-driven opportunities.

Stock falls on Tuesday as investors focus on disruption risk

Shares of India’s second largest IT services provider fell 3.4% on Tuesday, nearing a six-year low, even as management spoke about new opportunities. The drop reflected a wider market view that AI could compress revenue pools for legacy services if productivity gains are passed through to clients. Infosys shares have fallen more than 35% over the past 12 months, according to the figures cited, keeping investor attention fixed on near-term demand conditions and the pace of client spending. In another sharp move highlighted in the broader coverage, Infosys shares were also described as having plunged 9% to a near six-year low, with nearly INR 40,000 crore of market value said to have been erased “in minutes.”

Management avoids share-price commentary, talks up AI opportunity

When asked about the stock, management declined to comment on the share price itself. Co-founder and chairman Nandan Nilekani said the scale of AI opportunity was large because “many new things” become possible with AI, adding that he expects “a lot of work” to come in the coming years. The company’s messaging focused on positioning rather than near-term price action, seeking to reassure shareholders that AI will create demand for new services rather than only reducing legacy work.

Demand remains soft, CFO flags client caution and “AI inflation”

Jayesh Sanghrajka, chief financial officer, told shareholders that the “overall demand environment continues to be soft.” He said clients are behaving cautiously due to macro concerns, and added that growth is also being impacted due to “AI inflation.” The comments were consistent with the market’s current focus on discretionary spending, budgets, and the willingness of global enterprises to commit to large transformation programmes.

CEO points to early-stage adoption and a mix of human and agent skills

CEO Salil Parekh said AI adoption remains in an early stage across many clients and industries. He described a period where expertise will be built in both human and agent-based forms, especially in areas that require deep domain understanding. His remarks positioned Infosys’ experience in industry domains as an advantage in building and deploying AI systems in real client environments.

Sector sell-off deepens after Accenture’s guidance cut

The pressure on Infosys was not isolated. The Nifty IT index slumped over 6% to a three-year low after Accenture’s guidance cut triggered a sharp sell-off in Infosys, TCS, HCLTech and other IT stocks. The market reaction reflected how closely Indian IT valuations and expectations track global cues, especially commentary from large US-based consulting and IT services firms that influence sentiment on discretionary spending.

Price levels and market-cap milestones highlighted by the sell-off

Several price points and market-cap levels were cited as investors tracked the decline across sessions. Infosys was reported to have hit a fresh 52-week low of INR 1,030.00, with a 52-week high of INR 1,728.00. In another session, the stock slipped as much as 3% to INR 1,215.15 on the BSE, falling below a prior low of INR 1,215.45 recorded in April 2023, marking its weakest level since December 2020. During that session, market capitalisation was said to have slipped below INR 5 trillion to around INR 4.93 trillion, before the stock recovered to around INR 1,234 by 1:35 PM, down 1.3%.

Key facts snapshot

Market impact: what investors are reacting to

The market’s reaction in the stock and the index points to two forces moving together: softer demand and structural uncertainty around how AI changes pricing and service mix. The article context highlights fears of AI-led revenue pool compression, where clients redirect spending toward targeted AI investments instead of broad-based outsourcing and consulting. It also points to the idea that productivity gains from AI can turn deflationary for service providers if benefits are shared with clients through pricing. Alongside AI concerns, macro signals such as cautious client behaviour and the influence of the US Federal Reserve’s hawkish stance were cited as adding to worries about enterprise technology investment.

Why this matters: connecting the AGM questions to the wider IT cycle

The AGM Q&A showed how quickly shareholder priorities shift when a stock is at multi-year lows. Instead of focusing mainly on operational execution, questions concentrated on the relevance of the core business model in an AI-first environment and on job and growth implications for the broader technology services industry. At the sector level, the Accenture guidance cut acted as a sentiment trigger, reinforcing a view that discretionary IT spending may remain constrained. The split in expert opinion noted in the coverage, with some seeing valuations turning attractive while others stay cautious, underlines that the key debate is no longer only about near-term growth but also about how durable revenue models are under AI-driven change.

Conclusion

Infosys used its 45th AGM to underline AI-led opportunities and the importance of domain expertise, even as shareholders pressed management on falling share prices and automation risks. With the stock near multi-year lows and the Nifty IT index under pressure after global cues, investors appear focused on demand softness, pricing dynamics, and the pace at which AI reshapes IT services spending.